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Philip Morris International (New York Stock Exchange: Prime MinisterSwedish Match has announced that it will invest $600 million over the next two years through one of its U.S. subsidiaries to open a state-of-the-art manufacturing facility in Aurora, Colorado. The facility is being built to produce Swedish Match ZYN nicotine pouches to help Meeting the growing global demand from legal age consumers for smoke-free products.
“Philip Morris International and its U.S. affiliates are accelerating their mission to move adult smokers away from cigarettes in the United States by investing in new manufacturing capacity in the United States to meet the growing demand for nicotine options that are scientifically proven to be better alternatives,” said Stacey Kennedy, president and CEO of Philip Morris International U.S. “We believe Colorado shares our commitment to innovation, economic opportunity and public health.”
The U.S. subsidiary plans to begin construction on the new facility later this year and begin initial operations by the end of 2025, with regular production beginning in 2026. The construction phase of the project alone is expected to create approximately 5,000 jobs associated with the construction of the facility, with approximately $1 billion in economic impact.
As previously announced, Swedish Match North America is currently ramping up production of ZYN oral nicotine pouches at its Owensboro, Kentucky facility. The ongoing investments in both Owensboro and Aurora are designed to provide sufficient capacity in the near to medium term to meet the current growth rate in ZYN adoption among adult nicotine consumers in the United States, as well as export capacity.
Philip Morris (PM) entered the U.S. market for the first time after acquiring Swedish Match in late 2022. Swedish Match’s ZYN oral nicotine pouches have been available in the U.S. market for over a decade and are designed as a better option for consumers of legal age who smoke and want to continue using nicotine.
Shares of Philip Morris International Inc. (PM) were flat in premarket trading Tuesday. The tobacco company’s shares are up more than 11% year to date.